Apple extends its deal with Qualcomm: an admission of weakness

© Lemon squeezer

At the beginning of 2019, brands like Samsung or Xiaomi already offered 5G smartphones, while Apple waited until October 2022 to offer this technology to its customers, via the iPhone 12 series. In fact, the company Cupertino was in conflict with Qualcomm, one of the main suppliers of 5G modems, and had to reach an agreement with it before being able to launch its first 5G iPhones. To bury the hatchet with this supplier, Apple had to pay several billion dollars.

At the same time, the Cupertino company is seeking to emancipate itself by developing its own 5G modems. And for this, it relies on a division of Intel, specializing in connectivity, which it bought for a billion dollars. But, unfortunately, the development of Apple's 5G modems, which would allow it to no longer purchase components from Qualcomm, is taking longer than expected.

An extended agreement

Obviously, Apple does not comment on the progress of the development of its 5G modems. However, the fact that the deal with Qualcomm has been extended signals that these modems are still far from ready. An extension of this agreement was announced by Qualcomm in a press release published in September. This press release indicated that Qualcomm will provide 5G modems to Apple for iPhones which will be launched in 2024, 2025 and 2026.

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And this extension was once again mentioned by Qualcomm, which has just presented its latest quarterly results. “Apple has exercised its unilateral option to extend its global patent licensing agreement for an additional two years, bringing the existing agreement through March 2027” Qualcomm CEO Cristiano Amon said during the conference call.

Yet rumors indicate that Apple initially planned to use its own modems 5G, for the iPhone, from 2025. But according to an article published by Bloomberg, this roadmap has already been revised, because of the difficulties that Apple faces in the development of the component.

• Following an agreement with Qualcomm, Apple was able to equip iPhones with 5G modems from this supplier (with which it was in conflict)
• But at the same time, Apple is developing its own 5G modems by relying on a division of Intel that it bought for $1 billion
• Unfortunately, the development of Apple 5G modems is taking longer than expected
• And Apple extended its agreement with Qualcomm until March 2027

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